Gravity Model by Panel Data Approach

Kumar, Sushil; Ahmed, Shahid

doi:10.1177/0015732515598587

Cited by 23 publications

(12 citation statements)

References 29 publications

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“…Stojčić, Vojinić and Aralica (2018) proved that trade liberalization in the EU increased the quality of exports and the share of high technology intensive industries in its structure across all new member states, similarity we observed a positive impact of the EU on international trade. Kumar and Ahmed (2015) found that the South Asia Free Trade Agreement (SAFTA) produced trade creation among its members, and this study similarly proves that the EU as the integrating grouping has a stimulating impact on international trade. Cieślik, Michałek and Mycielski (2012) found that the adoption of the euro results in trade expansion for the CEE countries.…”

Section: Resultssupporting

confidence: 60%

What determines export structure in the EU countries? The use of gravity model in international trade based on the panel data for the years 1995-2015

Maciejewski

Wach

2019

Journal of International Studies

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The aim of this article is to demonstrate the differences in the intensity of production factors' use in the export of the European Union countries, which cannot be explained only by the resources available at the disposal of these countries. The paper is an empirical analysis of the general and bilateral trade of the EU countries. The article uses statistical data for comparative analysis of the export structure and further construction of the gravity model. The line of reasoning consists of two essential elements. First, conclusions are drawn based on literature analysis. The main empirical part of the article is based on quantitative analysis (the gravity model using secondary data). UNCTAD was used as the data source of statistical data. Commercial cooperation attractiveness in the EU is a key factor in constructing the gravity model of foreign trade. The attractiveness can be expressed as the size and level of development of economic partners, geographical distance and the common border. Nevertheless, new variables such as memberships in the EU and the EMU were added. The resources of production factors have no direct impact on the export structure. The chosen direction of economic cooperation is crucial.

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Section: Resultssupporting

confidence: 60%

What determines export structure in the EU countries? The use of gravity model in international trade based on the panel data for the years 1995-2015

Maciejewski

Wach

2019

Journal of International Studies

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“…However, cross-section data collected for several time periods (panel data) result in more useful information. The advantage of using panel data is that it captures the relevant relationship among variables and can monitor ‘unobservable trading-partner-pairs’ individual effect (Kumar & Ahmed, 2015). Matyas (1997) is of the view that the gravity model should be used with exporter, importer and time effect as cross-section is affected by misspecification.…”

Section: Methodsmentioning

confidence: 99%

“…The study concludes that there is statistically no significant relationship between exchange rates and exports. In another study, Kumar and Sehgal Arora (2015) have found that India’s exports as well as imports from other BRICS countries have increased in the first decade of the present century, particularly with China followed by South Africa. However, the imports have increased more rapidly, resulting in an increasing trade deficit of India with these countries.…”

Section: Review Of Literaturementioning

confidence: 96%

Gravity Model Approach: An Empirical Application with Implications for BRICS Countries

Wani

2023

The Indian Economic Journal

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This article aims to identify the main determinants of annual export flow among BRICS countries through the estimation of panel data from 1992 to 2018. The estimated results suggest that gross domestic product (GDP) and trade openness among other factors can explain export flow among BRICS countries. The most important finding of the study is that the formation of BRICS has exercised a negative and significant impact on bilateral trade among member countries. This study also found that the intra-industry trade dominates the intra-BRICS trade. Finally, the study found that the geographical distance between countries might be a factor for impeding trade among member countries. Thus, this study highlights the importance of increasing economic cooperation among these countries in terms of developing infrastructure, signing of free trade agreement (FTA) and increasing people-to-people contacts. JEL Codes: F00, F15, C23, F13

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“…Thus, our result is supportive of prior studies. The average tariff rates (1 + Imp jt ) are an explicit measure of trade cost and higher tariff rates imposed by importing country tends to daunt export [77,78]. In other words, the export of a country is significantly determined by the tariff rate charged by the importing country.…”

Section: Plos Onementioning

confidence: 99%

Examining the determinants and efficiency of China’s agricultural exports using a stochastic frontier gravity model

et al. 2022

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This paper aims to examine the key determinants and efficiency of China’s agricultural exports with its 114 importing countries by applying the Stochastic Frontier Analysis (SFA) on an augmented gravity model for the period of 2000–2019. The Poisson Pseudo Maximum Likelihood (PPML) and the fixed effect models were also estimated simultaneously to confirm the robustness of our findings. The results reveal that China’s economic size (GDP) and its importing countries, the Belt and Road Initiative (BRI), common border, and the Chinese language positively determine China’s agricultural export flows. The results, on the other hand, also reveal that China’s agricultural export is adversely influenced by the income (per capita GDP) of China and its trade partners, currency depreciation, distance, and landlocked. On an average account, China has untapped the potential of 51% in its agriculture export with the countries used in this study. We provide policy suggestions as part of our study.

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Gravity Model by Panel Data Approach

Cited by 23 publications

References 29 publications

What determines export structure in the EU countries? The use of gravity model in international trade based on the panel data for the years 1995-2015

What determines export structure in the EU countries? The use of gravity model in international trade based on the panel data for the years 1995-2015

Gravity Model Approach: An Empirical Application with Implications for BRICS Countries

Examining the determinants and efficiency of China’s agricultural exports using a stochastic frontier gravity model

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